Ghanaian economy is recovering from recession, which resulted in the loss of thousands of jobs, huge damage to infrastructure and severe effects on the overall economy. The key reasons behind this disastrous economic situation were lack of investment, excessive use of credit, uncontrolled inflation and high imports. These factors resulted in a heavy price rise for commodities and goods. The result of these circumstances was a recession with large scale reduction in the gross domestic product (GDP) and employment rate.
The president and the government are trying to rebuild the economy. They have released many beneficial economic policy reforms. To implement these reforms, the government has adopted aggressive policies. But, these moves have not been successful in solving the core issues that have blocked the economy. The key task before the Ghanaian authorities is to change the mindset of their people. The key to do that is to take action by improving the conditions of the communities.
The basic problem is unemployment. More than half the population of Ghana is unemployed. This number is expected to increase in the coming years due to the continued decline in the production level. The lower production means that the consumers will have to pay more for commodities. Hence, the main motivation to improve conditions of the unemployed is to create more jobs.
Another major challenge facing the Ghanaian authorities is the chronic lack of basic infrastructure. Lack of adequate infrastructure results in a very slow pace of economic growth. If the government wants to accelerate economic growth, it should build more roads, upgrade the port and airports, and create more infrastructures.
The major obstacles hindering the economic revival in Ghana are multifarious. Insufficient capital and finance, inefficient management of funds, long term loans, and poor management of the resources are some of them. Some of the common problems include non-payment of salaries and increased inflation rate are some of the others. However, if such issues are tackled properly, tremendous benefits will be seen.
The successful economic recovery programme in Ghana will have a great impact on the future of the sub-Saharan African countries. If it is managed well with proper execution by the government, the impact of the programme will be far reaching. This is the only way by which sub-Saharan countries can sustain their rapid economic growth and avoid socio-economic disasters in the near future. The key is to plan early, and implement the programme well.